THE FAMILY PARTY
www.familyparty.org.nz

PRESS STATEMENT FOR RELEASE
 

Axe GST for family’s sake
 

15 June 08. The Family Party is continuing its call for GST to be removed off basic food groups as families struggle to stay above the breadline due to increasing living costs.

Rising costs of food and petrol is now causing families on higher incomes to turn to food banks. Salvation Army spokesman Gerry Walker says rises in the cost of accommodation, dairy products and fuel are putting the squeeze on lots of households and the situation is the worst his organisation has seen in around six years

“Families are holding out for the long overdue tax cuts but the general consensus is that they won’t go far enough to relieve the pain. The Family Party’s proposal to axe GST on basic food-groups such as fruit and vegetables is the most effective and fair approach Government could take towards families in these difficult times,” says party leader Richard Lewis. 

The Food Price Index is up 6.8 per cent in the year to May, mainly due to higher prices for the fruit and vegetables subgroup (up 3.8 per cent), non-alcoholic beverages (up 2.6 per cent) and grocery food (up 0.5 per cent).

“The benefits of removing GST on basic food-groups will be felt at the grassroots where it is most needed, particularly amongst middle to low income families and beneficiaries,” he added.

In May the Family Party released a policy of removing GST off basic food groups, infant and elderly necessities, household energy, rates and the excise duty on fuel.

ENDS

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